How can you get affordable auto policies for teenagers?

by evan » Mon Jun 12, 2006 03:54 am
Posts: 1276
Joined: 01 May 2005

Adrenaline rushing teenagers are usually seen as potential risks by insurers. Reckless driving, speeding tickets, drunken driving are mostly attributed to teen drivers. Hence, it becomes quite risky to insure them. That they have more chances to get involved in accidents compared to matured drivers, is the main reason why insurance providers charge high rates when you want to get your teen drivers insured. However, there are also ways to lower the rate that companies would usually charge in such cases.

6 Popular ways to get affordable auto coverage for your teenagers
  1. Shop around: Not all insurers will offer the same rate. There will be insurers who will have lower rate than others. You may check out such companies but make sure you get adequate coverage. Do not compromise there. Compare rates and coverage provided by different companies before you buy a policy.
  2. Good student discount: Insurers often offer discounts if your teen driver has been a good student. Being a good student to them means that these drivers will be responsible and careful when driving, compared to others who are not such good recipients of education. Students with Grades A or B get good discounts almost up to 25%.
  3. Driver's education course: If your teen driver has had good education as a driver from a good/reputed driving school, his/her policy rates might be discounted. Make sure the teens get good driving lessons from the driving school to be able to get the concession on the premium. You can find a 'Safe Drivers Program' with some insurers, after the completion of which, your teenager can get additional discount. In addition many companies also offer discounts to those students attending school 100 miles away from home and where there are no cars in the school campus. Having other cars would increase the risk of accidents.
  4. Include him/her in your policy: It is relatively cheaper to include your teenager in your policy than buy a separate one for him. You can add your teen's name as an 'occasional' driver or as a 'pleasure-use only' driver instead of primary driver. It is assumed that the primary drivers are going to drive more frequently than other drivers. Moreover, if you include them in your policy, the discounts that apply to you would automatically also apply to them.
  5. Provide safer car to your teenagers: This does not mean that you get brand new car ensuring all kinds of safety for your teen drivers. Remember, new cars are more expensive to insure. If they have to, then, let them drive your old car and keep reminding them (without sounding irritating) about road safety that they need to maintain.
  6. Teach them the law and about safety: Spend some time with your teenager and teach them about the driving laws in your state, the restrictions that apply to new drivers. Insist on them following the law and talk to them about the consequences of drunken driving. You may sometimes ride with your kid to see how he / she drives, and if you find any thing wrong you may gently point it out. Having a safe driver's record is the best defense against raise in the policy cost.

The car insurance cost for teenagers generally expensive one. As the statistics shows that for the teens there are three times more chances to get involved in an accident than that of a mature car driver. And when we talk about the age factor, the chance of a sixteen year old to get into an accident is ten times more than the drivers between 30 and 59 years old drivers.

So addition of a teen driver always means to raise the cost of the premium significantly. Your rate will increase by 50% for an inclusion of a teen girl and the rate becomes almost double with a teenage boy.

But instead of the facts above, there are ways to lower the costs.

Shop around: Car insurance rates for teenagers can be lowered by shopping around the different insurers as the rate varies a lot from company to company. Try to get a number of quotes and compare them to suit best your teen.

Good student discount: If the teenager is a good student (maintaining the grade B or above) this could help her to save up to 25% on the car insurance. According to studies the good grade students have better driving records compared to those with lower grades.

Driver's education course: You must be sure that your teen has taken a driver's education course. Then contact your insurance company to get discounts on the insurance premium. Some insurers offer safe drivers program. With the completion of this program your teenager can get additional discount. In addition many insurers provide discounts to those students attending their schools 100 miles away from home and don't have cars in the school campus.

Insure your teenager with your policy: It will be relatively cheaper to include your teenager to your policy than to a separate policy. You can include your teen's name to your car insurance policy as an 'occasional' driver or as a 'pleasure-use only' driver instead of primary driver. Because it is assumed that the primary drivers are going to drive the car more. If they have their own car you can insure with your existing company to get discounts.

Provide safer car to your teenagers: Insist your teen to drive an older and bigger model cars rather than a newer model. As this would help to reduce the insurance costs much. Also this kind of car discourages in turn the reckless driving behavior. And the older cars carry less collision and comprehensive coverage which reduces the costs. Bigger cars are helpful in adding the car safety instruments.

Make your teen learn about safety: Spend times with your teenagers to teach how to drive safely. Because a good driving record will be the best defense against the increasing insurance cost. With the safety driving your child would remain safe as well as it also save money. The rate will drop eventually as your teenager grows with a good driving record. If they get tickets or get into accident the cost will be a ballooning one.

More car insurance articles:
Tips to lower the cost of car insurance.
How to file an accident claim.

Total Comments: 5

Posted: Mon May 21, 2007 07:58 pm Post Subject: Discounts

How does the good student discount process work?

Does the student provide the grades for the current term or the overall transcript? Will a simple copy of the grades do, or will the insurance company also call the school to check?

Posted: Sun Jun 03, 2007 03:27 pm Post Subject: Good Student Discount

Usually it requires the student to carry a 3.0 grade average. It usually is based upon two consecutive semesters or a cumulative average. Some companies re-verify the discount annually. Some only do when new business is written. Some companies require proof be faxed (by the agent) and some companies require the agent maintain the records in his file.

*System Edited : Link moved to Signature as per TOS

Posted: Sun Jun 03, 2007 11:50 pm Post Subject:

Yes most auto insurance providers want you to send in a copy of a report card for the renewal of the policy which is usually every 6 months or so. I know that many of the companies that I dealt with wanted to see this proof to make sure they were keeping up the good grades.

Posted: Wed Oct 06, 2010 11:54 pm Post Subject: Good info

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Posted: Wed Oct 06, 2010 11:55 pm Post Subject: Good info

Very nice site!

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